23, 24

23. (5 points) Bond N is a callable bond that is currently selling for $1,090. It pays a semiannual coupon based on an 8% annual coupon rate and has 7 years to maturity. The bond has a par value of $1,000. It is callable in three years at call price of $1,080. What is the value of the call premium? What is the yield to call for this bond? 24. (6 points) Bond K is a bond that pays an annual coupon payment of $80, has four years to maturity, is currently selling for $1,012, and has a par value of $1,000. What is the yield-to- maturity for this bond? If you can reinvest the coupon payments at 6%, what is the realized compound return for this bond if it held to maturity